Jindal Drilling & Industries Ltd Auditor Reports

To the Members of Jindal Drilling & Industries Limited
Report on the Standalone Ind AS Financial Statements
Opinion

We have audited the accompanying standalone Ind AS financial statements of Jindal Drilling & Industries Limited (‘the
Company), which comprise the Balance Sheet as at 31st March 2025, the Statement of Profit and Loss (including other
comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended
and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as
‘standalone Ind AS financial statements).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone Ind AS financial statements give the information required by the Companies Act, 2013(the Act") in the
manner so required and give a true and fair view in conformity with the accounting principles generally accepted
in India including Indian Accounting Standards ("Ind AS") specified under Section 133 of the Act, of, of the state of
affairs (financial position) of the Company as at 31st March, 2025, and its Profit (financial performance including other
comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statement in accordance with the Standards on Auditing as specified
under Section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described
in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants
of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act, and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
standalone financial statement of the current period. These matters were addressed in the context of our audit of the
standalone financial statement as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined the matters described below to be the key audit matters to be
communicated in our report.

Key Audit Matter		Auditors Response
Provisions and Contingent Liabilities		In order to get a sufficient understanding of litigations and contingent liabilities, we have discussed the process of identification implemented by the Management for such provisions through various discussions with Companys legal and finance departments. We read the summary of litigation matters provided by the Companys/Units Legal and Finance Team.
The Company faces several legal, regulatory, and tax disputes, the outcomes of which are uncertain and could potentially lead to substantial liabilities. Notably, there is a disputed income tax demand amounting to Rs 512.21 Lakhs, which is detailed in Note No. (p) of the Accounting Policy and further elaborated in Note No. 33 to the Standalone Ind AS Financial Statements.
		We read, where applicable, external legal or regulatory advice sought by the Company. We discussed with the Companys/
The evaluation of the risks associated with these litigations involves complex assumptions and requires significant judgment to determine the appropriate level of provisioning. This inherently increases the risk that provisions and contingent liabilities may either be inadequately provided for or not fully disclosed.		Units Legal and Finance Team certain material cases noted in the report to determine the Companys assessment of the likelihood, magnitude and accounting of any liability that may arise.
		In light of the above, we reviewed the amount of provisions recorded and exercised our professional judgment to assess the adequacy of disclosures in the Standalone Ind AS financial statements.
Due to the complexity and judgment involved in assessing these matters, they are considered to be key audit matters.
Litigation, arbitrations, and claims	Our audit procedures included:
As detailed in Note 39A paragraphs [i] and [ii] of the standalone Ind AS financial statements for the year ending March 31, 2025, the Company is involved in significant legal proceedings under arbitration with a government party. These proceedings include a suit for specific performance of a contract related to the supply of drilling services, which is pending before the Honble Supreme Court.	• Assessing managements position through discussions with the in-house legal expert and external legal opinions obtained by the Company [where considered necessary] on both the probability of success in the aforesaid cases, and the magnitude of any potential loss.
	• Discussion with the management on the development in these litigations during the year ended March 31, 25.
	• Roll out of enquiry letters to the Companys legal counsel (internal/ external) and study the responses received from them. Also assessed that accounting/disclosure made by the Company are in accordance with the assessment of legal counsel.
The complexity of these litigation matters means that the managements judgment regarding the recognition and measurement of provisions for these legal proceedings is inherently uncertain. The assessment of such provisions is subject to change as the outcomes of the legal cases evolve.
	• Review of the disclosures made in the financial statements in this regard.
Given the complexities involved and the inherent uncertainty in the managements judgments, this matter is considered a key audit matter.	• Obtained representation letter from the management on the assessment of these matters

 

Significant estimate and judgement in hedge accounting including valuations thereof	Our audit procedures included:
	• we obtained understanding of the companys overall hedge accounting strategy forward contract valuation and hedge accounting process from initiation to settlement of derivative financial instruments including assessment of the design and implementation of controls and tested the operating effectiveness of these controls.
Refer note no. [m] of accounting policy and note 8 & 37 to the Ind AS standalone financial statements. The company enters into derivative financial instruments which are mainly forward contracts to manage its exposure of foreign currency risk of highly probable forecasted transactions which arise during the normal course of its business. These contracts are measured at fair values leading to derivative financial assets of Rupees 323.89 lakhs as at March 31, 2025. The net movement of cash flow hedge reserve for the year is Rupees 17.51 lakhs net of taxes which is recorded in other comprehensive income. The gain/loss on maturity of such derivative instruments is recorded in the statement of profit and loss along with the relevant hedged item.
	• we assessed companys accounting policy for hedge accounting in accordance with Ind AS.
	• we tested the existence of hedging contracts by tracing to the confirmations obtained from respective banks.
	• we tested managements hedge documentation and contracts on a sample basis.
	• we assist in re-performing the year-end fair valuations of derivative financial instruments on a sample basis and compared these valuations with those recorded by the company including assessing the valuation methodology and key assumptions used therein.
Due to the changes in risks and estimates during the lifecycle of the customer contracts in order to apply hedge accounting management is required to demonstrate that the underlying contract is considered to be a highly probable transaction that the hedges are highly effective and maintain appropriate hedge documentation. A degree of subjectivity is also required to determine when hedge accounting is to be considered as ineffective. Fair value movements of the forward contracts are driven by movements in financial markets.
	• we assessed the disclosure of hedge transactions in the financial statements.
These transactions may have a significant financial effect and have extensive accounting and reporting obligations and accordingly this is considered as a key audit matter.
Identification and disclosures of Related Parties	Our audit procedures amongst others included the following:
The Company has related party transactions which include, amongst others, sale and. purchase of goods/services to its joint ventures, common controlled entity, KMP and other related parties and lending and borrowing to its joint ventures.
	• Evaluated the design and tested the operating effectiveness of controls over identification and disclosure of related party transactions.
	• Obtained a list of related parties from the Companys Management and traced the related parties to declarations given by directors, where applicable, and to Note 35 of the standalone Ind AS financial statements.
We focused on identification and disclosure of related parties in accordance with relevant accounting standards as a key audit matter.
	• Read minutes of meetings of the Board of Directors and Audit Committee.
	• Tested material creditors/debtors, loan outstanding/loans taken to evaluate existence of any related party relationships; tested transactions based on declarations of related party transactions given to the Board of Directors and Audit Committee.
	• Evaluated the disclosures in the standalone Ind AS financial statements for compliance with Ind AS 24.

 

Accounting for Deferred and Capitalized Refurbishment Expenses Related to Drilling Rigs	Our audit procedures amongst others included the following:
	Obtained an understanding of the Companys processes and internal controls relating to the identification, classification, and accounting treatment of refurbishment and preparation costs incurred on hired and owned rigs.
As described in Notes 8(A), 15, and 39B & C to the standalone Ind AS financial statements, the Company incurs significant refurbishment and preparation costs in relation to both hired and owned drilling rigs, which are accounted for differently depending on the nature of the rig.
	For costs related to hired rigs, assessed the nature of contract preparation and certification expenses by examining underlying documentation such as vendor invoices, contracts, and managements estimates to determine whether deferral and straight-line amortization over the contract period was appropriate.
For hired rigs, preparation and certification costs incurred prior to the commencement of drilling services are deferred and amortized over the duration of the related drilling contracts on a straight- line basis. These costs are considered directly attributable to the Companys future performance obligations under its drilling contracts.
	For owned rigs, examined the nature of refurbishment and dry dock expenses capitalized as part of property, plant and equipment, and evaluated whether the capitalization criteria were met. Verified the allocation of such costs to the appropriate components of the rigs.
In the case of owned rigs, refurbishment costs, including those incurred for mandatory dry dock activities at the end of each contract period (typically every three years), are capitalized as part of the property, plant and equipment. These costs are recognized as part of the carrying amount of the specific component of the rig and are depreciated over the contract period as depreciation.
	Assessed the reasonableness of the amortization and depreciation periods applied by management, with reference to the underlying contract terms, past practices, and regulatory requirements.
	Performed a test of details on a sample basis to verify the accuracy and completeness of costs deferred or capitalized, including validation of supporting documentation.
	Reviewed the related disclosures made in the standalone financial statements to assess compliance with the disclosure requirements of the applicable Ind AS, including the nature, accounting policy, and significant judgments involved.
	By executing these audit procedures, we were able to evaluate the appropriateness, accuracy, and completeness of the deferred drilling expenses and capitalized refurbishment costs. This enabled us to assess whether such expenditures have been accounted for in accordance with the applicable accounting standards, and the Companys stated accounting policies.

In view of the abovesaid Award receivables of Rs 6632.81 lacs, appearing in financial statements will be adjusted
against other financial liabilities and balance of Rs 10042.77 lacs shall be transferred to profit & loss account.
Meanwhile JDIL will take steps to get release the bank guarantee given for an amount of Rs. 166.25 crore already
deposited by ONGC with JDIL, in terms of order dated 27th April 2022 of the Honble Supreme Court. Now in view
of the order of Honble tribunal order dated 3rd April 2025, JDIL will take financial impact arising from this order in
the next financial year. Meanwhile JDIL would be able to get the bank guarantee released.

(For detailed notes, refer note no.39)

Our Opinion is not modified in this matter.

b) We draw attention to Note no. 39 (C) to the Standalone Financial Statement relating to Refurbishment Expenses
of owned Rig - The company has incurred a total of Rs.17,237.67 lakhs on the refurbishment of owned Rig, namely
Jindal Supreme. This cost incurred on account of refurbishment expenses has been capitalised in accordance with
Ind-AS -16 of jack-up Rig Jindal Supreme and this capitalised component of amount has been depreciated over
the contract period starting from 15th October 2024.Therefore, depreciation has been increased to Rs. 2517.18 lakhs
and the same has decreased in operating expenses.

Our Opinion is not modified in this matter.

(For detailed notes, refer note no.39)

Information Other than the Financial Statements and Auditors Report thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the
information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards
Report, Business Responsibility report, Corporate Governance and shareholders information, but does not include the
financial statements and our auditors report thereon. The report containing other information is expected to be made
available to us after the date of this auditors report.

Our opinion on the standalone financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the standalone financial
statements, or our knowledge obtained during the course of our audit or otherwise appears to materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
(‘the Act) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view
of the financial position, financial performance including other comprehensive income, cash flows and changes in
equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Companys ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism
throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, international omissions,
misrepresentations, or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are
appropriate in circumstances. Under Section 143(3][i] of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and operating effectiveness of such
controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditors report to the related disclosures in the standalone financial statement or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.

Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative materiality and qualitative factors in [i] planning the scope
of our audit work and [ii] to evaluate the effect of any identified misstatements in the standalone financial statements.

We communicate with those charged with the governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the standalone financial statements of current period and are therefore the key audit
matters. We describe these matters in our auditors report unless law or regulation precludes public disclosures about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report] Order, 2020 (‘the Order] issued by the Central Government of
India in terms of Section 143(11] of the Act, we give in the Annexure A, a statement on the matters specified in the
paragraph 3 and 4 of the Order.

2. As required by Section 143(3] of the Act, we report that:

a. we have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.

b. in our opinion proper books of account as required by law have been kept by the Company so far as it ap-
pears from our examination of those books;

c. the Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Chang-
es in Equity dealt with by this Report are in agreement with the books of account;

d. in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards
specified under Section 133 of the Act read with relevant rule issued thereunder;

e. on the basis of the written representations received from the directors as on 31 March 2025 taken on record
by the Board of Directors, none of the directors is disqualified as on 31 March 2025 from being appointed as
a director in terms of Section 164 (2] of the Act;

f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate report in Annexure B. our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls
over financial reporting; and

g. with respect to the other matters to be included in the Auditors Report in accordance with the requirements
of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to
the explanations given to us, the remuneration paid/provided by the Company to its directors during the year
in accordance with the provisions of section 197 of the Act.

h. with respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information
and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in its standalone Ind
AS financial statements. Refer to Note 33 to the standalone Ind AS financial statements;

ii. The Company does not have any material foreseeable losses on long term contracts including derivative
contracts, Refer note no. 37 in the Standalone financial statement.;

iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company;

iv. (i) the management has represented that, to the best of its knowledge and belief, no funds, have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind funds) by the Holding Company or its subsidiary companies incorporated in India to or in any
other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether re-
corded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the ultimate beneficiaries;

(ii) the management has represented that, to the best of its knowledge and belief, other than as dis-
closed in the notes to accounts, no funds have been received by the company from any person(s)
or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the company shall, whether, directly or in directly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (" Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representation under sub-clause(iv)

(i) and(iv)(ii) contain any material misstatement.

v. The final dividend proposed in the previous year, declared and paid by the Company during the year is
in accordance with Section 123 of the Act, as applicable.

As stated in Note No 51 (v) to the standalone financial statement, the Board of Directors of the Company
have proposed final dividend for the year which is subject to the approval of the members at the ensuing
Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent
it applies to declaration of dividend.

vi. As described in note no. 51 (iii) to the standalone financial statement, based on our examination, The
company has been maintaining its books of accounts in the ERP which has feature of recording audit trail
of each and every transaction made in the account along with the date when such changes were made
and ensuring that the audit trail cannot be disabled throughout the year as required by proviso to sub rule
(1) of rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts) Amendment
Rules, 2021.

Further, during the course of our audit we did not come across any instance of audit trail feature being
tempered with and the audit trail has been preserved by the Company as per the statutory requirements
for record retention

Annexure A to the Independent Auditors Report

The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone Ind AS

financial statements for the year ended 31 March 2025, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and

situation of property, plant and equipment. The company has maintained proper records showing full
particulars of intangible assets.

(b) All the property, plant and equipments have been physically verified by the management according to a
regular program, which, in our opinion, is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies with respect to book records were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records
of the Company, the title deeds of immovable properties (other than properties where the company is
the lessee and the lease agreement are duly executed in favour of the lessee) disclosed in the financial
statements are held in the name of the Company.

(d) during the year, the company has not revalued its property. Plant and equipments (including right to use
assets) or intangible assets or both and hence provisions of clause (d) are not applicable to the company.

(e) According to the information and explanation given to us and the record maintaining by the company no
proceedings have been initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

(ii) (a) the physical verification of inventory (excluding material in transit or lying with third party) has been conducted

by the management at reasonable intervals. In our opinion, the coverage and procedures of such verification
by the management is appropriate. In respect of inventory lying with third parties, these have substantially
been confirmed by them. In respect of inventories of stores and spares, the management has a verification
programme designed to cover the items over a period of three years. The discrepancies noticed on physical
verification of inventory as compared to book records were not 10% or more in aggregate for each class of
inventory.

(b) The company has been sanctioned working capital limit in excess of five crore rupees in aggregate from
banks on the basis of the security of the current assets of the company. The quarterly returns/statements filed
by the company with such banks are generally in agreement with the books of accounts of the company.

(iii) According to the information and explanations given to us and on the basis of our examination of the records
of the Company, the Company has provided any guarantee or security or granted any loans or advances in the
nature of loans, secured or unsecured to companies, firms, limited liability partnership or any other parties during
the year, in respect of which:

(a) Based on the audit procedures carried on by us and as per the information and explanations given to us the
Company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided
security to any other entity. The Company has provided loans, during the year end details of which are given
below: No such loans or advances, guarantees or security made/provided during the year to other than
subsidiaries, joint ventures and associates.

A: Aggregate amount granted / provided during the year	Loans (Rs .In lakhs)
Associate/subsidiary/Joint Venture	-
Other Companies	-
B: Balance outstanding as at balance sheet date in respect of above cases:
Associate/subsidiary/Joint Venture	15078.23
Other Companies	-

(b) According to the information and explanations given to us and based on the audit procedures conducted by
us, in our opinion the investments made during the year are, prima facie, not prejudicial to the interest of the
company.

(c) In respect of loans granted and advances in the nature of loans provided by the Company, the schedule
of repayment of principal and payment of interest has been stipulated and the repayments or receipts of
principal amounts and interest have been regular as per stipulations except interest referred under clause (iii)

(d) below,

With respect to the loans repayable on demand (Refer reporting under clause (iii)(f) below) having regard to
the fact that the repayment of principal or payment of interest has not been demanded by the Company, in
our opinion the repayments of principal amounts and receipts of interest are regular.

(d) According to the information and explanations given to us and on the basis of our examination of the records
of the Company, there is overdue amount for more than ninety days in respect of loans given outstanding as
at the balance sheet date.

Relationship with Entity	Nature	Amount (in lacs)	Extent of delay	Remark if any
Joint Ventures	Interest	599.19	More than 90 days	Total interest due as on 31st March 2025 was Rs. 842.01 lakh.

Annexure A to the Independent Auditors Report

[e] During the year no loans or advances in the nature of loans granted which has fallen due during the year has
been renewed or extended or fresh loan granted to settle the overdue of the existing loan given to the same
parties.

Further, the Company has not given any advances in the nature of loans to any party during the year.

(f) The Company has granted loans which are repayable on demand or without specifying any terms or period
of repayment details of which are given below

	All Parties including related party (in Rs lacs)	Promoters (in Rs lacs)	Related Parties (In Rs Lacs)
Aggregate of loans
-Repayable on Demand	15078.23	-	15078.23
Percentage of loans to the total loans	100%	-	100%

(iv) According to the information and explanations given to us and on the basis of our examination of the records of
the Company, the Company has not given loans, or provided any guarantee or security as specified under Section
185 and 186 of the Companies Act, 2013 ("the Act"). In our opinion the pro-visions of Section 186 of the Act have
been complied with.

(v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve
Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies
(Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

(vi) According to the information and explanations given to us, the Central Government has not pre-scribed the
maintenance of cost records under Section 148(1) of the Act for the services provided by it. Accordingly, clause
3(vi) of the Order is not applicable.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of books

of account and records the company has been generally regular in depositing Undisputed statutory dues
including provident fund, employees state insurance, income tax, goods and service tax, duty of customs,
cess and other material statutory dues with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of provident fund, ESI, Income Tax,
goods and service tax, duty of customs, cess and other material statutory dues were in arrear as at 31st March
2025 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of duty of customs which
have not been deposit with the appropriate authorities on account of any dispute. However, according to
information and explanations given to us, following dues of income tax, Goods and service tax, and cess have
not been deposited by the Company on account of ongoing disputes:

Nature of the Statute	Nature of the dues	Amount Disputed (Rs/Lacs)	Forum where dispute is pending
1. Income Tax Act	Income Tax demand	199.32	ITAT A.Y.2008-09 to 2010-11
	Income Tax demand	92.98	ITAT A.Y. 2011-12
	Income Tax demand	92.56	ITAT A.Y.2012-13
	Income Tax demand	103.02	ITAT A.Y 2013-14
	Income Tax demand	24.33	ITAT A.Y 2014-15

(viii) According to the information and explanations provided to us, there were no transaction which were not
recorded in the books of account and have been surrendered or disclosed as income, during the year, in the tax
assessments under the Income Tax Act, 1961.

(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records

of the Company, the company has not defaulted in repayments of loans or other borrowings or in the payment
of Interest thereon to any lender during the year. Accord-ingly, clause 3 (ix) of the Order is not applicable to
the Company.

(b) According to the information and explanations given to us and on the basis of our examination of the records
of the Company, the Company has not been declared willful defaulter by any bank or finan-cial institution or
government or government authority.

(c) According to the information and explanations given to us by the management, the Company has not
obtained any term loans during the year. Accordingly, clause 3[ix][c] of the Order is not applicable.

(d) According to the information and explanations given to us and on an overall examination of the balance sheet
of the Company, we report that no funds have been raised on short-term basis by the Company. Accordingly,
clause 3(ix)(d) of the Order is not applicable.

(e) According to the information and explanations given to us and on an overall examination of the standalone
financial statements of the Company, we report that the Company has not taken any funds from any entity or
person on account of or to meet the obligations of its subsidiaries, associates or joint ventures as defined
under the Act. Accordingly, clause 3[ix][e] of the Order is not applicable.

[f] According to the information and explanations given to us and procedures performed by us, we report that
the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies (as defined under the Act). Accordingly, clause 3[ix][f] of the Order is not
applicable.

(x) (a) The Company has not raised any moneys by way of initial public offer or further public offer (including debt

instruments). Accordingly, clause 3[x][a] of the Order is not applicable.

(b) According to the information and explanations given to us and on the basis of our examination of the records
of the Company, the Company has not made any preferential allotment or private placement of shares or fully
or partly convertible debentures during the year. Accordingly, clause 3[x][b] of the Order is not applicable.

(xi) (a) Based on examination of the books and records of the Company and according to the information and

explanations given to us, no fraud by the Company or on the Company has been noticed or reported during
the course of the audit.

(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of
the Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and
Auditors) Rules, 2014 with the Central Government.

(c) As represented to us by the management, there are no whistle blower complaints received by the Company
during the year.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Com-pany. Accordingly,
clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given by the management, the company is
in compliance with section 177 & section 188 of Companies Act, 2013 where appli-cable for all transactions with
related parties and the details of the related parties transactions have been disclosed in the notes-2.28 to the Ind
AS financial statements, as required by the applicable accounting standard.

(xiv) The company is not covered by section 138 of the Companies Act, 2013, related to ap-pointment of internal auditor
of the company. Therefore, the company is not required to appoint any internal auditor. Thus, the provision of
Clause (xiv) of paragraph 3 of the order are not applicable to the company.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered
into any non-cash transactions with its directors or persons connected to its direc-tors and hence, provisions of
Section 192 of the Act are not applicable to the Company.

(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,

clause 3[xvi][a] of the Order is not applicable.

(b) During the year, the company has not conducted any Non-Banking Financial or Housing Finance Companies.
Accordingly, clause 3[xvi][b] of the Order is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of
India. Accordingly, clause 3(xvi) of the Order is not applicable.

(d) According to the information and explanations provided to us, the Group (as per the provi-sions of the Core
Investment Companies (Reserve Bank) Directions, 2016) does not have CIC as part of the group.

(xvii) The Company has not incurred cash losses in the current and in the immediately preceding financial year.

(xviii) During the year there has been no resignation of statutory auditors of the company and hence clause 3 (xviii) of the
order is not applicable to the company.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expect-
ed dates of realization of financial assets and payment of financial liabilities, our knowledge of the Board of Directors
and management plans and based on our examination of the evidence supporting the assumptions, nothing has
come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report
that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall
due within a period of one year from the balance sheet date. We, however, state that this is not an as-surance as to
the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit
report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year
from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) (a) According to the records of the company and information and explanations give to us, in our opinion, there

are no unspent amounts towards Corporate Social Responsibility (CSR) on projects other than ongoing
projects requiring transfer to fund specified in schedule vii to the companies act within a period of six months
of the expiry of the financial year in compliance with second proviso to sub section (5) of section 135 of the
said Act. This matter has been disclosed in Note no. 50 to the standalone financial statement.

(b) According to the records of the company and information and explanations give to us, in our opinion, there
are amount remaining unspent under subsection (5) of section 135 of the Companies Act, pursuant to any
ongoing project has been transferred to special account in compliance with provision of sub section (6) of
section 135 of the said Act. This matter has been disclosed in Note no. 50 to the standalone financial statement.

(xxi) There are no qualification or adverse remark by the respective auditors in the companies (Auditors Report) Order
(CARO) reports of the companies included in Consolidated Financial State-ments.

Annexure B to the Independent Auditors Report

Independent Auditors Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of
the Companies Act, 2013 (*the Act)

We have audited the internal financial controls over financial reporting of Jindal Drilling & Industries Limited [‘the
Company] as of 31st March 2025 in conjunction with our audit of the standalone Ind AS financial statements of the
Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Company considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued
by the Institute of Chartered Accountants of India [‘ICAI]. These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on
our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting [‘the Guidance Note] and the Standards on Auditing, issued by ICAI and deemed to be prescribed
under Section 143[10] of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both
applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of
the risks of material misstatement of the standalone Ind As financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that [1] pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; [2] provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of the management and directors of the company; and [3] provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys
assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future
periods are subject to the risk that the internal financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2025,
based on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India.

For Kanodia Sanyal & Associates

Chartered Accountants

FRN:008396N

 

(R.K. Kanodia)

Partner

Membership no.: 016121

UDIN: 25016121BMOTLJ1379

 

Place: New Delhi

Date: 26th May 2025